ABC Construction has entered into a three-year contract to build a vessel for Southeast Power. Below is the contract information. ABC can reliably determine the outcome of the contract when the contract is 20% complete. Year 1 Year 2 Year 3 (1) Cost incurred to date $250,000 $796,250 $1,200,000 (2) Estimated cost to complete 1,000,000 428,750 0 (3) Progress billings to date 250,000 775,000 1,400,000 ( 4) Revenue to date 225,000 695,000 1,100,000 (5) Contract Price $1,400,000 Under HKAS 11, the accountant will recognize revenue and costs based on stage of completion. In this problem, the company used cost basis. As you can see, the company used the cost incurred to estimate the total cost and thus obtain the part of the contract it completed. And then they used the statistics to recognize each year's revenues and costs. Finally they can get the financial statement as a table